Hi Guys - ill also add 2 cents. When getting a car allowance, you can get it taxed by your employer or complete a form called PAYG withholding variation short application 2013 Allowance or HELP / Financial supplement from the ATO. If this is approved, you then receive your allowance tax free. If you get it tax free, make sure you spend all your allowance or you can find yourself owing the tax man money. Eg: Car allowance - $15000 pa Repayments - $1000 per month = $12000 pa Fuel - $100 per week = $5200 pa Insurance and Rego - $150 per month = $1800 pa Service and Repairs - $2000 pa Total cost = $21,000 If you then work out your % for Business use say 90%. Total spend of $21000 @ 90% = $18,900. Therefore, $15000 car allowance is justified as you have spent $18,900 for business purposes. In this case, you get the car allowance tax free and will get some additional money back.